Any Thoughts?
Does anyone have any ideas for my friend who is continuously going deeper into debt?
He rented an apartment in Palo Alto California for 1900 per month off the internet. Turns out that the place is a real dump and so he and his freind decided to rent another place to live in and sublet the craphole for 1900/month. However, nobody will rent it for even 1600. So, he is stuck with almost 3800/month worth of payments until August of 2006. His debt is growing monthly. He has it all on a 9.99% credit card. Like 20k or something.
I guess Im asking what the best way for him to get out of the lease. The landlord is completely unhelpful in negotiating.
My friend has been working like 70-80 hours a week at a very stressful job and should not have to worry about this craphole he got off the internet, even though he was a dope for doing so..Thanks
[ Edited by RobertMD on Date 09/19/2005 ]
[ Edited by RobertMD on Date 09/19/2005 ]
[ Edited by RobertMD on Date 09/19/2005 ]
nobody knows any reasonable way to get out of a year lease that was signed 6 weeks ago in California?????
let an attorney read it and let him rip it apart and find a reason for him to renig. a good attorney will find something wrong with it and find a way to make it void. This is a question you have to consult a lawyer for a good answer..
hope it helps, Ryan
In the past when I was a renter and had to vacate early I would simply find a tenant to repalce me.
In your situation it sounds like the market rents are lower and it will be very difficult to find a replacement.
I wish that I could help out more but it sounds like your friend made two big mistakes. Why would he sign a second lease and pay double rent?
Good luck, keep us posted.
Take care,
[addsig]
Quote: a good attorney will find something wrong with it and find a way to make it void
You are absolutly correct, I spoke with one this morning and he already has some ideas. Thanks for the advice!
-Robert
It is a bad idea to use "rules of thumb" for decision making. Rules of thumb can be used to eliminate properties from further consideration. You should do a cash flow analysis on any property you are seriously considering to purchase. In your MyTools section of your MyTCI you will find a tool called the Proformanator which should help with your analysis. You can always use a spreadsheet as well.
gahooper,
Did you state your rule the way you intended? Perhaps you meant that 75% of the rent should cover these expenses. As you stated, the total rent should cover 75% of expenses may leave you with a very large negative cash flow.
I want to know where the rents are double the mortgage payment!